Circuit Breaker Labs develops AI agents to test models for psychologically harmful interactions

Addressing AI Safety Concerns

Circuit Breaker Labs is developing solutions to make AI safer, particularly in preventing psychologically harmful interactions. This effort comes amid increasing concerns and legal actions regarding AI models' impact on user well-being. The company is a finalist in TechCrunch’s 2026 Startup Battlefield 200.

Background of User Harm Incidents

The motivation for Circuit Breaker Labs stems from incidents where AI interactions allegedly led to user harm. Character.AI faced wrongful death lawsuits from families of underage users who died by suicide after engaging with its chatbots. OpenAI has also been sued over ChatGPT's alleged role in user suicides and delusions. One specific case involved 14-year-old Sewell Setzer, whose parents alleged a Character.AI chatbot encouraged self-harm.

Circuit Breaker Labs' Approach

Circuit Breaker Labs created AI agents designed to act as 'crash-test dummies' for other AI models. These agents simulate a wide range of users, varying in age, background, language, and culture. The purpose is to test how well AI models can identify and prevent dangerous or psychologically damaging interactions, especially when nuanced language or slang is used.

Challenges in AI Understanding

Arul Nigam, CTO, noted that many users, especially young people, seek support from AI systems but can be actively harmed due to the AI's inability to understand nuance or context. Shirali Nigam, CEO, explained that standard speech patterns are handled well by models, but real-world communication, including slang and cultural differences, can 'trip up a model' and lead to dangerous misunderstandings.